Welcome to the MI-SERA Website
SERA Calls for Repeal of Pension Tax
See December 2, 2011 press release.
Michigan Supreme Court Upholds Pension Tax
November 18, 2011
In a 4-3 decision along party lines, the Michigan Supreme Court upheld the pension tax on public employee retirees born after 1945, upheld the age scheme for taxing pensions, but nixed the phase out of an exemption for high income pensioners. Although disappointing, the decision was not surprising considering the line of questioning during oral argument.
Read the court’s summary of the decision here: www.mi-sera.org/doc/syllabus_pa38-2011constitutionality.pdf
Read the decision here: http://courts.michigan.gov/supremecourt/Clerk/11-12-Term-Opinions/143157.pdf
Read some of the media coverage here:
Michigan high court hands Gov. Rick Snyder a victory on plan to tax pensions Detroit Free Press
“A divided Michigan Supreme Court has given the green light to the extension of Michigan s 4.35% personal income tax to pensions, one of the cornerstones of the Gov. Rick Snyder-led overhaul of the state tax system that was approved amidst partisan rancor earlier this year. The court did, however, unanimously strike down provisions in the new tax law that would have phased out the use of personal tax exemptions by wealthier taxpayers. That provision, effectively raising the taxes on higher income earners, is barred by the state constitutional ban on a graduated income tax, the court said.”
www.freep.com/article/20111118/NEWS06/111118044/Michigan-high-court-hands-Snyder-victory-plan-tax-pensions?odyssey=tab|topnews|text|FRONTPAGE
Michigan Supreme Court clears way for tax on public pensions — Detroit News
www.detnews.com/article/20111118/POLITICS02/111180437/1361/Michigan-Supreme-Court-clears-way-for-tax-on-public-pensions
Gov wins major tax ruling at Mich. Supreme Court — WKAR
www.publicbroadcasting.net/wkar/news.newsmain/article/0/0/1877020/Top.Stories/BREAKING.NEWS.Gov..wins.major.tax.ruling.at.Mich..Supreme.Court
Read the Governor’s statement here: www.michigan.gov/snyder/0,4668,7-277-57577_57657-265917--,00.html
See also Remarks Summarizing SERA/NARFE/AARP Friend of the Court Brief by Mary Pollock.
Briefs and reply from all the parties and a background description of the case from the Michigan Supreme Court can be accessed through the Michigan Supreme Court Web site.
The video of the Michigan Supreme Court hearing can be accessed through the State Bar of Michigan Virtual Court.
Michigan State Employees Retiree Association (MI-SERA) is an organization devoted exclusively to the betterment of all retired State of Michigan employees.
SERA works to
- keep your pension and insurance benefits intact
- keep up with inflation
- keep on top of important developments affecting State of Michigan retirees
- keep track of old and make new friends
- keep track of proposed Federal and State Legislation that will effect State of Michigan retirees — both good or bad — and to inform its members
- monitor both the State Employees Retirement Board, and the Investment Advisory Committee that make recommendations to the State Treasurer on how the funds in the State Employees Retirement Fund are to be invested